3.1 Political, Economic and Social Aspects Relevant for PSB

 

BiH’s political, economic, and social context is defined by its post-socialist and post-conflict nature, power-sharing state structures, and dire economic circumstances. After the dissolution of Yugoslavia and the war in Bosnia, the country was subjected to international intervention, which considered media sector reform a key in the peace building and democratization processes.[41] These efforts were met with resistance from ethno-nationalist politicians in the country who most often formally agreed to the new models and ideas, but obstructed their implementation.

 

One of the particularly salient factors in BiH’s political context is the consociational power-sharing structure imposed by the 1995 General Framework Agreement for Peace in Bosnia and Herzegovina (GFAP).[42] Critics of the GFAP argue that this constitutional arrangement excludes citizens based on ethnicity[43] by enshrining the three ‘constituent peoples’ (Bosniaks, Croats, Serbs) while excluding ‘Others’ (Roma, Jews, Bosnians,[44] the undeclared, and others) from political representation.[45] Many scholars argue that this arrangement petrifies an “increasingly dysfunctional political system.”[46] Paradoxically, power-sharing principles based on consociationalism have failed to foster democracy. Instead of addressing past conflicts, the categorization of the Bosnian citizenry along ethnic lines (correlated with religion and language) simply institutionalizes ethnic factionalism. Unlike more successful consociational societies in Western Europe, BiH’s constitutional structure “pits individual rights against the collective premises of the consociational structures” and offers limited incentives for institutional change.[47] Indeed, the failure of the consociational model in creating the conditions for a robust democracy in BiH is mirrored in the collapse of the PSB system.

Like other countries in the region, the political context of BiH is dominated by political capture of the state. In BiH, these political elites most often belong to ethnically defined political parties, which purport to serve as ‘guardians’ of national interest for their own groups. Divisions and disagreements among dominant political parties have repeatedly stalled the implementation of even the most basic reforms, including the implementation of laws pertaining to the public service media. Consequently, Freedom House’s Nation in Transit report for 2016 considers BiH a hybrid regime, caught in transition between a consolidated democracy and authoritarianism.[48] The report blames the “excruciatingly complex political system” resulting from the Dayton Agreement, which “has crippled the state” and led to the country operating as “a set of ethnic fiefdoms.”[49] 

Many scholars agree that ethnic identity and nationalism are utilized by political elites to “obscure the process of economic dispossession”[50] of the populace. Ruling parties in BiH demonstrate characteristics of what Mujkić calls “a democracy of ethnic oligarchies.”[51] Corrupt oligarchs are, by definition, parasitic upon public institutions and thus “have no potential to be democratic agents.”[52] Within this milieu PSB flounders against oligarchic interests, which have no endogenous incentive for empowering an independent PSB system. Deliberate backpedaling about PSB’s proper implementation and development thus undermines its proper democratic and cohesive function. Likewise, parties face insufficient exogenous incentives for PSB reform. While PSB and free media are nominally conditions for EU accession, international actors such as the EU are, on the whole, unwilling to challenge political elites or demand accountability,[53] exacerbating the stagnation and politicization of PSB. What is lacking is more robust support for democratization and civic action which would transform the very structure that sustains the ethnopolitical elites and fails to incentivize political will for supporting truly public and functioning PSB.

 

BiH’s economic situation has had negative consequences for PSB, as well as on the political stalemate that has existed for several years. Bosnia and Herzegovina has one of Europe’s highest unemployment rates – 27.5% in 2014,[54] while youth unemployment was 58% in 2016.[55] BiH is ranked as the fifth poorest country in Europe by the World Bank,[56] while according to EU statistical office Eurostat Bosnia is the poorest European country measured by GDP per capita, and second poorest measured by Actual Individual Consumption (AIC). Bosnia is at the bottom of the list with GDP per capita of only 28 percent of the European average, and an AIC which is 37 percent of the European average. Some argue that within the complex governmental structure, partisan conflicts have “affected living conditions,” with enormous debts growing “as budget funds were sunk in corruption or used to buy social peace at the expense of investment.”[57] As the World Bank estimates, various factors – such as political and social turmoil, lack of progress in making improvements to the business climate – reduced economic growth rates. Critics have pointed to rapid post-war privatization and deregulation as evidence of the predatory actions of local political elites whose pillage of state assets began during the war.[58] 

 

Prominent local critics of post-war transition in post Yugoslav countries point to regional patterns of “general impoverishment, huge public and private indebtedness…widespread deindustrialization, social degradation, depopulation through diminished life expectancy and emigration, and general unemployment.”[59] These patterns are all visible in BiH. According to the first postwar census (though its results were contested)[60] from 2013, the population has declined by 20 percent in the past 25 years,[61] the biggest drop in Bosnia for more than a century, and the largest decline in the region. Overall, 3.52 million people live in Bosnia today, which is some 875,000 fewer than in 1991, with many assumed to have emigrated for better economic opportunities. These economic and social conditions have recently been the subject of protest and citizens’ dissatisfaction: in 2014, waves of social protests were sparked in numerous places in BiH, led by workers from privatized and destroyed factories. They demanded unpaid salaries and pensions, and were soon joined by students and other citizens, resulting in three month-long protests and demands for resignations of political elites.[62] 

 

3.2 Media System Overview

 

The media system in Bosnia mirrors the ethnic polarization and territorial fragmentation of the country, and suffers from the same problems of economic hardship and politicization. Its development was highly influenced by the 1992-1995 war, and deep reforms in the post-war period that were guided by the international community.[63] According to Freedom House, in 2015 the media market in BiH was “overcrowded; divided along ethnic, entity, and party lines; marked by close relationships among publishers, journalists, and politicians; and characterized by a dearth of independent reporting” while the public broadcasting content “reflects the fact that their funding depends on the whims of politicians.”[64] 

 

It is therefore not surprising that some of the most relevant international rankings rating the situation of media democratization and professionalism in the country are showing continuous decline in the last decade. For example, the Freedom House scores for Independent Media (as well as overall state of democracy) in BiH have been steadily dropping since 2006.[65] Similarly, the IREX Media Sustainability Index for Bosnia and Herzegovina shows a decline in the development of a sustainable media system in BiH since 2006 and stagnation in the past few years.[66] According to the same source, the media are under political influence, reporting is biased, and media laws are poorly implemented.[67] Freedom of speech and good business management scores also dropped in 2015 compared to the previous year due to threats to journalists, political and economic instability, and decreasing revenue sources.[68] The country’s media system is considered to be ‘an unsustainable mixed system.’[69][a]

The broadcasting market in BiH is oversaturated given the limited revenues available. The 2015 CRA report counts 43 TV and 145 radio stations, plus three public broadcasters - one for each entity (Radio-Television of the Federation of Bosnia and Herzegovina [RTVFBiH], Radio-Television of Republika Srpska [RTRS]) and one at state-level (Radio-Television of Bosnia and Herzegovina [BHRT]). An important aspect of the broadcast media market is that there are five public TV stations at the cantonal level in Federation BiH, and seven radio and TV stations at the municipal level, all financed by government, with an estimated cost of 7.87 million EUR per year.[70] According to the IREX MSI report:

 

“when it comes to government funding for media, data collected by Association CRMA in 2015 showed that around $16.36 million is provided by the government on different administrative levels, in the form of direct funding from government budgets, subsidies or different contracts with media (for covering certain events, advertising, etc.). The current models of government financing lack credible criteria, transparency, independent decision-making and overall guaranties of editorial independence, and thus are believed to be primarily a means of control over media.”[71] 

The size of the radio and TV market is hard to establish due to fragmentation and a lack of reliable media marketing research, reliable audience measurement, or a database with updated information. The CRA is one of the only bodies that analyze the broadcasting market, and in the last available report from 2013, the size of BiH’s media market was assessed at 156.5 million KM in 2012.[72] According to the CRA report, 70% of the total revenue of the electronic media market in 2012 (app. 90 million KM in total) in BiH goes to public service broadcasters, while 35.4% or 19.63 million KM (out of the total marketing revenue of television, print, radio, and online marketing) goes to public broadcasters, which is relatively large compared to other countries in Europe.[73] According to the OSCE, public service broadcasters should not have more than 25% marketing income as they should not be in direct competition with private media for these revenues.[74] 

Moreover, due to the recent financial crisis, advertising money in the media market as a whole is decreasing, and “considered to be far less than required for healthy functioning of the media sector.”[75] Data from Fabrika advertising agency in Sarajevo claims that advertising in the country peaked in 2008, after which the decline in advertising revenue tracked closely with the global recession.[76]

Private broadcasters are increasingly becoming competitors of PSBs in terms of primetime news,[77] but often even in other segments. While audience shares for commercial broadcasters have demonstrated a growing trend, audience shares for PSBs, excluding RTRS, have been falling in the past two years.[78] Analysts from the media watchdog portal Analiziraj.ba, who make weekly assessments of programs of major TV stations in the country, including public broadcasters, have observed that currently commercial TV stations are leading in the production of children’s programs and cultural programs,[79] and they are also catching up with PSBs when it comes to informational services.[80] From PSB data, it is clear that PSBs are lagging behind when it comes to cultural and children’s programs. For example, in 2015 only 3% of BHRT’s programming was children’s broadcasting and 6% cultural. RTRS, in 2014, had 4% children’s programming and 6% cultural shows.[81] 

The advent of new media platforms, such as cable and Internet protocol television (IPTV), online media, and social media platforms are disrupting the media market in a profound way. Mobile phone penetration in BiH has been rising, reaching 87.85% by 2014.[82] According to Internet World Statistics, at the end of 2015 there were 2,628,846 Internet users, a 68.1% penetration. The same source suggests 1,400,000 Facebook users on June 30/16, or 46.1% penetration rate.[83] IREX notes that “users tend to rely increasingly on social networking tools for news,”[84] especially young people. However, television remains the main source of news in BiH – a 2016 EBU infographic demonstrated that Bosnians watch the most television in Europe – on average 5 hours and 4 minutes a day.[85]

 

3.3 PSB in BiH: Context, Establishment, Development and Obstacles

The end of the 1992-1995 war in Bosnia and Herzegovina left the media landscape entirely divided along ethnic lines. In Republika Srpska, the state controlled broadcaster SRT (Srpska Radio Televizija) was under direct control of the ruling SDS party. In the Bosniak part of the Federation of BiH, Sarajevo-based RTVBIH was controlled by the SDA Bosniak ruling party, while areas of the Federation under the Croat HDZ party control had EROTEL TV, as well as illegal re-broadcasting of programs of the Croatian national broadcaster HRT (Hrvatska Radio-Televizija/Croatian Radio-Television) across the BiH territory. All of these media houses continued to use war rhetoric and hate speech even after the peace accord was signed, undermining the prospects of democratization and peace implementation in the country.

The reform of state controlled broadcasters was high on the peace implementation agenda when the Peace Implementation Council (representing the international community) introduced media reforms in 1997.[86] The Office of the High Representative (OHR) was given powers “to curtail or suspend” any media network or program thought to be working contrary to the Dayton Peace Accords, which opened the door for direct intervention in the media system. The first significant action was in 1997, when SFOR[87] troops forcibly took over the transmitters of Republika Srpska’s public television network[88] in order to put an end to the inflammatory broadcasting which was thought to imperil the peace implementation process. This in turn enabled more direct intervention in media reform on the part of OHR. In 1998, the OHR called for the creation of the public service broadcasting system – or rather, the transformation of government-controlled broadcasters in each entity into a functioning PSB and the establishment of a state-wide public service broadcaster as well.[89] At this point, both the OHR and European donor states involved in BiH were “fervent in [their] support for the development of PSB, especially for the creation of a state-wide public service broadcaster.”[90] The crucial point came in 2002 when OHR introduced by a decree a set of laws formally establishing the PSB system in BiH. After 2003, the OHR’s involvement in PSB was reduced as the European Commission took the lead, making the establishment of a functional PSB system a condition for EU accession. Consequently, in 2005, changing the PSB legal framework was made an official condition for signing the Stabilization and Association Agreement between the EU and BiH.[91] Since then, the process has been in the hands of the political elites of BiH, which has arguably led to strife and stagnation, as elaborated below.

3.3.1 PSB Organization

The organizational structure of the PSB system in BiH is a prime example of the failure of an ideal model in practice. According to the current legal framework, the Public Broadcasting System of BiH includes one national and two entity broadcasters:

  • The state-level public broadcaster of BiH (BHRT), consisting of one television channel (BHT) and one radio channel (BH Radio 1).[92]
  • Radio-Television of the Federation of Bosnia & Herzegovina (RTVFBiH), consisting of one TV channel (FTV) and two radio channels (Radio FBiH and Radio 202).[93]
  • Radio-Television of the Republika Srpska (RTRS),[94] consisting of one TV channel and one radio channel.[95] 

 

The law also prescribes the existence of a fourth unit – the Corporation – as an umbrella organization to manage equipment, set the development strategy, coordinate the technical and human potential of the three broadcasters, and collect all advertising revenues and license fees and distribute them among the broadcasters in accordance using a predefined formula.[96]

 

Such a model was meant to replicate the BBC model, and was proposed by a BBC consultancy team that was involved in the early process of transformation. The BBC model operates in “an internal market among PSB units, where all the services would be purchased between the units, thus making the production more cost-effective and the system more accountable.”[97] The involvement of BBC experts was part of the international intervention spearheaded by OHR, and local media experts were hardly consulted in the process.[98] 

Figure 1: The Structure of the PSB System of BiH[99]

 

When it comes to their internal structure, the Public Service Broadcasting System includes the System Board, consisting of 12 members: four from the Supervisory Boards of each of the three broadcasters. The System Board is in charge of the coordination of the system in terms of program scheme, proposing the amount of RTV license fee, etc. The System Board, at least formally, also performs as a Supervisory Board to the joint Corporation of the PSB System and adopts codes of conduct referring to the entire PSB System.

 

All three broadcasters – BHT, RTRS and RTVFBiH – have a Supervisory Board and Managing Board. The BHT Managing Board consists of the Director General who supervises the daily operations of BHT, while the Supervisory Board is focused on programming and is in charge of supervising the performance of BHT in general. The Supervisory Board consists of four people – one from each of the three constituent peoples (Serbs, Bosniaks, Croats), and one representing "Others". The Parliamentary Assembly of BiH selects these members after receiving a list from the Communications Regulatory Agency with names of suggested candidates. RTRS and RTVFBiH have the same bodies but unlike BHT, their Managing Boards “are not required to have equal representation of all constituent peoples.”[100]

However, the fourth organizational unit of the PSB system, the Corporation, was never established. The inability to create the Corporation has been blamed partly on obstruction by political parties, given that the establishment of the Corporation would have eventually led to the creation of a unified system, with minimal possibility for political or economic influence. However, resistance to its establishment is also present on the part of the entity-level broadcasters. Given the redistribution of earnings envisaged by the Corporation, it is neither in the interest of RTVFBiH nor of RTRS, who would both lose a significant segment of the revenues from advertising they earn through the transfers to BHRT. Moreover, the Corporation would gain ownership of the equipment, which is also not in the interest of individual broadcasters, particularly those that are better equipped. In effect, the PSB system was never truly established in its envisaged form – instead, the three broadcasters act like competitors rather than partners who belong to the same organizational structure.